Account Types and Registration: Rapid Fire
Chapters in this video
- 0:00 JTWROS vs. TIC: who inherits at death
- 1:29 TOD supersedes a will, step-up in basis
- 2:32 Community property double step-up trap
- 3:18 Pattern day trader trigger and $25K minimum
- 4:30 $50K risk disclosure vs. $25K regulatory minimum
- 5:01 Day-trading margin call: 5 days, then 90-day freeze
- 5:33 Fee-based account suitability under Regulation Best Interest
- 6:16 ACAT timeline: validation in 1 day, completion in 3
- 7:07 Customer retention is never a valid exception
- 7:43 Rapid-fire exam recap
What this video covers
- Why Joint Tenants with Rights of Survivorship (JTWROS) and Tenancy by the Entirety (TBE) avoid probate, while Tenants in Common (TIC) and individual accounts pass through the estate
- How Transfer on Death (TOD) supersedes a will, and why beneficiaries have zero rights while the owner is alive
- What step-up in basis means at death, and why community property gives a double step-up that other joint forms do not
- The two-part pattern day trader trigger: 4 or more day trades in 5 business days AND more than 6% of total trades
- Why $25,000 is the minimum equity requirement for pattern day traders, and why the $50,000 figure is only a risk disclosure warning
- The exact Automated Customer Account Transfer (ACAT) timeline: 1 business day for validation, then 3 business days for completion from validation, never from initiation
- Why customer retention is never a valid exception to block an ACAT, and why a fee-based account can be unsuitable for a buy-and-hold investor under Regulation Best Interest
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